Enter the gross amount spent on advertising and the commission rate in to the calculator to determine the net advertising cost.

Gross to Net Media Advertising Formula

The following equation is used to calculate the net media cost from gross.

NMC = GMC * (1-CR/100)

  • Where NMC is the net media cost ($)
  • GMC is the gross media cost ($)
  • CR is the commission rate charged by the advertising company for placing your ads (%)

To calculate the net media cost from gross media cost, multiply the gross media cost by 1 minus the commission rate.

What is Gross and Net Media Advertising?

Definition:

Gross media advertising is the total amount spent on advertising or media.

Net media advertising cost is the amount spent directly on the ads themselves minus the commission of the ad placing company.

How to Calculate Gross to Net Media Advertising?

Example Problem:

The following example outlines the steps and information needed to calculate the net cost of advertising from the gross cost.

First, determine the gross cost. For this example, the gross media cost is found to be $1,000.00.

Next, determine the commission rate. The commission rate for this example, is 10%.

Finally, calculate the net media cost using the formula above:

NMC = GMC * (1-CR/100)

NMC = 1000 * (1-10/100)

NMC = $900.00